340 jobs at risk as Aussie paper mill teeters
Boyer Paper Mill chief executive David Marriner, speaking with the ABC this week, said he had been forced to shell out an additional $12m to ship in coal from NSW to keep the mill's operations running after Hydro Tasmania, a renewable energy provider, told him it would be unable to supply the mill with clean power.
'To my amazement, I sit in the commercial strip on Collins St to be told there's simply not the power,' he said.
Mr Marriner is trying to electrify the mill, located about 35km north of Hobart, to make it carbon neutral but said he needed 'the same terms and conditions' on power as other industrial users.
'(We want) Nothing more or nothing less than the prices that are being provided to the other two or three equivalent major suppliers,' he said.
'We just want the same terms and conditions. We don't want to be paying more than what our competitors are. I'm shattered and disappointed.'
Without competitive rates, the mill would be 'unsustainable', he said, and 340 workers could lose their jobs.
'Ask yourself, why should 340 employees take the burden of stupid decisions? Why should they lose jobs?' Mr Marriner said. The Boyer Mill is in Tasmania, north of Hobart. Jason Edwards / NewsWire Credit: News Corp Australia Prime Minister Anthony Albanese toured the mill in April, pledging $24m to help it transition away from coal power. Jason Edwards / NewsWire Credit: News Corp Australia
The mill formed a centrepiece of Anthony Albanese's re-election pitch during the 2025 campaign, pledging $24m in funding to help it switch from coal-fired boilers to electric boilers.
'Boyer Paper Mill is an iconic part of Tasmania's manufacturing story,' the Prime Minister said in April.
'It was Australia's first ever newsprint mill built in the 1940s, and thousands of Tasmanians have worked here over that time.
'We want to see the mill continue well into the future, and that is why we are committing up to $24m to help Boyer secure local jobs and supply chains and move forward with confidence towards a low-emissions future.'
Energy Minister Chris Bowen said the decarbonisation of industry made 'good economic sense'.
'Decarbonising our industries and manufacturing isn't just good for bringing emissions down, it makes good economic sense, as companies switch to running on not just the cleanest but the cheapest form of energy (which is) reliable renewables,' he said.
The power shock hitting Boyer follows other energy warning signs at major industrial hubs in Australia.
Rio Tinto's Tomago aluminium smelter in NSW is reportedly close to shutting down on high energy costs.
Tomago is powered by AGL Energy's Bayswater coal-fired power station but is pivoting to renewable energy.
Negotiations over a new energy contract have troubled the smelter's operations for months. The AGL contract is due to expire in 2028.
A shutdown at Tomago could impact 6000 jobs across the Hunter Valley region.
Rio holds a 51.6 per cent interest in the smelter, which produces about 590,000 tonnes of aluminium each year or about 37 per cent of Australia's total production.
Reports suggest the company has been in emergency talks with state and federal governments for a bailout in the past few weeks.
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